With an extended fraud alert, a lender or creditor is required to verify your identity in person or by phone at a number you provide before opening new accounts or making changes to existing accounts. It requires a copy of a valid police or law enforcement agency report, or a Federal Trade Commission Identity Theft Report. An extended fraud alert is similar to an initial fraud alert, but lasts for 7 years. Placing an initial fraud alert also allows you to request a free copy of your credit reports every 12 months from the three nationwide credit bureaus, in addition to the one free copy from each credit bureau you're entitled to under the Fair Credit Reporting Act.Īn extended fraud alert can be placed if you are a victim of fraud or identity theft. When you or someone else attempts to open an account in your name or make changes on an existing account, such as increasing the credit limit, the lender or creditor must take reasonable steps to confirm you are who you say you are, such as contacting you by phone at a number you provide, before completing the request. If you want to keep it active on your credit reports, you'll need to renew it after that time. Once you place an alert with one of the bureaus, that bureau will send your request to the other two.įraud alerts can be placed on your credit reports for free, and there are two different types:Īn initial (one-year) fraud alert can be placed if you believe you are or may become a victim of fraud or identity theft. You may contact any of the three nationwide credit bureaus - Equifax, Experian and TransUnion - to request a fraud alert. Think of it as a “red flag” that makes companies take steps to verify your identity before extending credit in your name. What is a Fraud Alert?Ī fraud alert is a notice that is placed on your credit reports that alerts credit card companies and others who may extend you credit that you may have been a victim of fraud, including identity theft. When it comes to your credit, you may hear terms like “fraud alert,” “security freeze,” and “credit report lock.” While each one is designed to help you better protect your personal information, they do so in different ways. Security freezes must be placed separately at each of the three nationwide credit bureaus.Security freezes and credit report locks are tools that can help restrict access to your credit.Fraud alerts encourage lenders and creditors to take extra steps to confirm your identity before issuing you credit.This article has been viewed 1,354 times. Jonathan has been featured in the New York Times, the Wall Street Journal, Money Tips, Mindful Magazine, and Business Insider among others. He also earned his Accredited Investment Fiduciary (AIF®) credential from Fi360. He studied Financial Analysis at the CFA Institute and earned his Certified Private Wealth Advisor (CPWA®) designation from The Investments & Wealth Institute. With over 25 years of financial advising experience, Jonathan is a speaker and the best-selling author of "Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend." Jonathan holds a BA in Philosophy and Religious Studies from Montana State University-Bozeman. Jonathan DeYoe is a Financial Advisor and the CEO of Mindful Money, a comprehensive financial planning and retirement income planning service based in Berkeley, California. This article was co-authored by Jonathan DeYoe, CPWA®, AIF® and by wikiHow staff writer, Jennifer Mueller, JD. There are 7 references cited in this article, which can be found at the bottom of the page.
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